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Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

Put a mustache on your Jeep this Movember for charity

Move over Lyft drivers, Jeep is getting in on the automotive mustache game. And it's for a good cause. The company announced that for the month of November, it will sell giant, bushy, black mustaches for Jeep vehicles through the Jeep Gear website and at dealers. The mustache is made by Carstache and costs $49.99, with all proceeds going to the Movember Foundation. The foundation supports improvements in men's health, and takes its name from the trend of growing mustaches in November. We would also like to point out that the product description says you shouldn't drive over 40 miles per hour with the mustache in place. So keep the 'stache wearing to your own face when traveling at highway speeds. Now if you don't have a Jeep on which you can put a mustache, well, you could probably put it on whatever car you have since it installs with some rubber-coated wires that thread through the grille. But if you really want a Jeep with a mustache, the company is running a contest in which you can post a photo of your mustache to Twitter or Instagram with the hashtag #JeepStacheContest for a chance to win a new Renegade. The winner will be the entry with the most creative, original and high-quality mustache. This contest is also an opportunity to help out Movember Foundation a little bit more. Jeep will donate $1 for every post with the hashtag "#JeepStache" up to $15,000. The contest runs until November 30, as does Jeep's donation program. Related Video:

Inexperienced Jeep driver buries his Wrangler at sea

There's an old maxim in off-roading that states, "Four-wheel drive doesn't keep you from getting stuck, it just gets you stuck in worse places." The truth of this statement was perfectly illustrated recently in a YouTube video of a Jeep Wrangler digging its own grave at the beach. On May 11, a YouTuber named Dan M uploaded a video he titled, "Drunk guy doesn't know how to off-road and ruins nice Jeep." The video, shot at dusk on a rocky looking beach, shows a blue Wrangler driving out into the surf without a care in the world. Dan, providing commentary along with an unseen female companion, was impressed with the Jeep driver's dash at first. "Wow, he must do that a lot because he ain't scared of getting stuck or anything," said Dan. As the Wrangler got deeper into the water, the Dan's friend expressed her doubts that the Jeep driver would make it out, especially when the Jeep got snagged on a little spit of sand sticking out into the water. Dan wasn't worried, however. "No, he'll manage to get out of there, he'll make it out of there. He'll back out and get out," he said. Dan's confidence in the Jeep driver was sadly misplaced, unfortunately. The driver managed to get the Jeep stuck on the sand bar then made the rookiest of rookie mistakes–he just gunned it. "Oh man, he's done! He's done!" yelled Dan as the Jeep driver proceeded to dig a huge hole in the sand that sunk the Wrangler up to its frame just as the tide started coming in. With that kind of dunking, especially in salt water, that Wrangler was probably a total loss, much like the Grand Cherokee that got washed downriver last week somewhere in Europe. Related Video: News Source: YouTube Weird Car News Jeep SUV Off-Road Vehicles wrangler beach